Ichimoku indicator analysis of gold for May 25, 2017

Gold price has held above the support level and reversed higher again today as we expected. Now it is testing important highs. The resistance between $1,257-$1,265 is critical for the short-term trend. Breaking it will open the way for a rise towards $1,280 at least.

The price is trading above the 4 hour Kumo. The trend is bullish. Gold back-tested the cloud support and shows reversal signs, indicating that the price is ready to break above $1,265 and test the major weekly resistance at $1,280-$1,300. Support at $1,245 remains the key one. If it is broken, we will test $1,220.

On the daily chart we still have no breakout. The price is trying to breach above the daily cloud and if it succeds, this will be a bullish sign. Holding the lower cloud boundary intact is a sign of strength. The correction looks like it wants to be a sideways one rather than a deep one. The levels of $1,280-$1,300 are seen as the next targets.The material has been provided by InstaForex Company - www.instaforex.com